Shares in China's CATL, world's biggest EV battery maker, surge in Hong
Kong after $4.6 billion IPO
[May 20, 2025] By
KANIS LEUNG
HONG KONG (AP) — Shares in CATL, the world’s largest maker of batteries
for electric vehicles, jumped more than 16% Tuesday in its Hong Kong
trading debut after it raised about $4.6 billion in the world’s largest
initial public offering this year.
The solid reception for the Chinese company, Contemporary Amperex
Technology Co., in Hong Kong suggests there is still an appetite among
international investors for leading Chinese manufacturers despite trade
tensions between Beijing and Washington.
It sold more than 135 million shares at their maximum offer price, 263
Hong Kong dollars ($33.6) each. Its shares rose after they started
trading at 296 Hong Kong dollars ($37.80), 12.5% higher than their offer
price. They closed 16.4% higher.
CATL also has shares listed in Shenzhen, a business hub neighboring Hong
Kong. They initially fell but then edged 1.2% higher.
A supplier to automakers like Tesla, Volkswagen, BMW, Mercedes-Benz,
Ford, Toyota and Honda, CATL held a nearly 38% global market share for
EV batteries in 2024, its listing documents showed.
The company has faced pressure from the U.S. In January, the U.S.
Defense Department added it to a list of companies it says have ties to
China’s military, an accusation that CATL denied. It called the
inclusion a “mistake.”

In April, John Moolenaar, chairperson of the U.S. House Select Committee
on China, wrote to the CEOs of JPMorgan Chase & Co. and Bank of America
to demand that the two American banks withdraw from their work on CATL's
IPO. But the two banks stayed on.
In the U.S., Ford Motor Co. is licensing technology from CATL to build
batteries, but the plan faces resistance from some Republican lawmakers,
who have expressed concern that the Chinese company could benefit from
U.S. tax dollars.
The U.S. has listed CATL as having ties to the Chinese military and U.S.
investors inside the U.S. were excluded from the “Regulation S” share
offering. Such offerings do not require registration with the U.S.
Securities and Exchange Commission.
However, many large U.S. institutional investors have offshore accounts
that allowed them to participate.
The company said it plans to use most of the net proceeds from its IPO
to build its factory in Hungary, meant to bring it closer to the
manufacturing facilities of its main European customers.
Government officials, including Hong Kong’s Financial Secretary Paul
Chan, attended its gong-striking ceremony in the city’s vibrant business
district, Central, on Tuesday. The company's chairman Robin Zeng said
his business is committed to becoming a zero-carbon technology company.
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Robin Zeng, chairman of Contemporary Amperex Technology Co. (CATL),
center right, strikes the gong at the listing ceremony in Hong Kong,
Tuesday, May. 20, 2025. (AP Photo/Chan Long Hei)
 “Listing in Hong Kong means we are
more broadly integrated into the global capital markets, and it’s
also a new starting point for us to promote the global zero-carbon
economy,” Zeng said.
Zeng, who trained as a physicist, helped found Amperex Technology
Ltd. in 1999. It mainly was engaged in research and development and
manufacturing of consumer lithium batteries. The company was sold to
Tokyo-listed TDK Corporation in 2005, but Zeng continued to oversee
the firm's management until 2017, its listing documents say.
In 2011, a team led by Zeng founded CATL, headquartered in the
businessman's hometown of Ningde in Fujian province in southeast
China. The literal meaning of the company's Chinese name is “Ningde
Era."
CATL says it has the broadest coverage of EV battery users globally,
with its batteries installed in over 17 million EVs, or one in every
three EVs worldwide, as of the end of 2024.
Terence Chong, executive director of the Lau Chor Tak Institute of
Global Economics and Finance at the Chinese University of Hong Kong,
said Hong Kong hasn’t seen an IPO of this size in a while and the
listing may boost such activity in the city.
The exclusion of U.S. investors had little impact since there was
sufficient demand for CATL's offering, he said.
The amount of funds raised through IPOs in Hong Kong rose 89%
year-on-year in 2024 following a double-digit decrease in 2023,
according to Yujia Li, an analyst at the Hong Kong Financial
Research Institute of the Bank of China.
CATL recorded a profit of 55.3 billion yuan ($7.6 billion) in 2024,
up 16.8% from 2023. Its listing surpassed JX Advanced Metals’ $2.9
billion IPO in Japan in March, which was previously the largest this
year, according to Renaissance Capital, a provider of pre-IPO
research and IPO-focused ETFs.
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Associated Press writers Damian Troise in New York and Didi Tang in
Washington contributed to this report.
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